NEW YORK, Aug. 28, 2013 /PRNewswire/ -- Bernstein Liebhard LLP today announced that a class action has been commenced in the United States District Court for the Central District of California on behalf of all those who purchased securities of Biolase, Inc. (NASDAQ: BIOL) ("Biolase" or the "Company") between November 5, 2012 and August 12, 2013, inclusive (the "Class Period").
Biolase is a biomedical company that develops, manufactures, and markets lasers in dentistry and medicine and also markets and distributes dental imaging equipment, including cone beam digital x-rays and CAD/CAM intra-oral scanners.
Plaintiffs allege that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business and operations. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company was facing near term solvency issues; (ii) the Company faced severe liquidity problems; (iii) the Company's sales were not as strong as reported; and (iv) as a result of the foregoing, the Company's financial statements were false and misleading at all relevant times.On August 7, 2013, Biolase issued a press release announcing its second quarter 2013 financial results. Rather than the $15.69 million in revenues defendants had led the market to expect, Biolase reported revenues of just $14.2 million – down 2.74% from the $14.6 million the Company had reported in the fourth quarter 2012 – and a loss of $.06 per share. Then, on August 13, 2013, before the markets opened, the Company announced that it was in violation of its bank covenants. On the news of the revenue and earnings misses and the Company's violation of prior debt covenants, the price of Biolase common stock, which had traded as high as $6.05 per share in intraday trading during the Class Period, fell more than 80% from that level to close at $1.19 per share on August 13, 2013. Plaintiffs seek to recover damages on behalf of all Class members who invested in Biolase securities during the Class Period. If you invested in Biolase securities as described above during the Class Period, and either lost money on the transaction or still hold the security, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than October 22, 2013. A "lead plaintiff" is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.
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